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Pure Storage Reports Solid Financial Performance for FY2025

On February 26, 2025, Pure Storage (NYSE: PSTG), a leading innovator in data storage technologies, disclosed its financial results for the fourth quarter and full year of fiscal 2025, which ended on February 2, 2025. This year was marked by significant growth, with full-year revenues exceeding $3 billion and impressive profitability.

Financial Highlights

During the fourth quarter, Pure Storage generated a revenue of $879.8 million, a notable 11% increase year-over-year. For the entire fiscal year, revenue surged to $3.2 billion, reflecting a 12% year-over-year growth. Subscription services also saw remarkable growth: in Q4, this segment brought in $385.1 million (up 17%) and reached $1.5 billion for the full year, an increase of 22%.

The company's subscription annual recurring revenue (ARR) for this quarter rose to $1.7 billion, up 21% compared to the previous year. Additionally, remaining performance obligations reached $2.6 billion, marking a 14% increase from the previous year. The GAAP gross margin for Q4 was reported at 67.5%, while the full-year gross margin was at 69.8%.

CEO Charles Giancarlo emphasized the company's commitment to revolutionizing data storage and management, stating: "Pure Storage delivered solid fourth quarter and full-year results as we fundamentally transform data storage and management for enterprises and hyperscalers."

Innovations Driving Growth

Fiscal year 2025 was foundational for Pure Storage, showcasing its technological advancements tailored for hyperscale environments and enterprise data management. Notable achievements included:

• - DirectFlash® software adoption within major hyperscale environments, achieving an industry-first partnership that highlights the transition from traditional hard disk drives (HDDs) to advanced storage technologies.
• - The launch of Pure Fusion™ v2, enabling clients to operate their storage systems as enterprise data clouds, effectively mirroring the operational efficiencies typically associated with hyperscaler operations.

The Pure//E™ family was also expanded, designed to offer better economics and power efficiencies compared to traditional disk-based systems, further solidifying Pure's position in the market.

Future Outlook

Looking ahead to the first quarter of fiscal 2026, Pure Storage has set its revenue guidance at $770 million, expecting an 11% increase year-over-year. The full-year revenue target stands at $3.515 billion, also indicating an 11% growth. Non-GAAP operating income is anticipated to reach $595 million, with an operating margin of 17%.

The company has also authorized an additional $250 million for stock repurchases, adding to the $192 million returned to shareholders in Q4 and $374 million throughout FY2025.

Recognition and Industry Leadership

In addition to impressive financial results, Pure Storage has received industry accolades, being recognized as a leader in the Gartner® Magic Quadrant™ for Primary Storage Platforms for the eleventh consecutive year, and for File and Object Storage Platforms for the fourth consecutive year. The company also achieved a Net Promoter Score (NPS) of 81, illustrating customer satisfaction and loyalty.

By focusing not only on growth but also on sustainability and responsible practices, Pure Storage has established itself as a trusted name in the tech industry, aiming for continuous improvement in performance, efficiency, and customer experience.

Pure Storage is poised for continuing success as it embraces innovative solutions and maintains its leadership in the data storage sector, setting transformative standards for technology and customer satisfaction.